Economic Buzz: US producer prices show mild rise despite fuel cost pressures

U.S. producer prices rose slightly in March, even as fuel costs increased due to the Iran war. The producer price index (PPI), which measures business costs, increased a seasonally adjusted 0.5% for the month.

Core PPI, which excludes food and energy, rose just 0.1%, lower than the expected 0.5%. Meanwhile, the services sector ? a key focus for Federal Reserve policymakers ? remained flat during the month.

On a yearly basis, overall PPI climbed 4%, marking the biggest 12-month increase since February 2023. Core PPI recorded a 3.8% annual rise.

Excluding food, energy, and trade services, PPI increased 0.2% for the month and 3.6% compared to a year earlier.

Trade services fell 0.3% in March, indicating that businesses may be absorbing some tariff-related costs instead of passing them on to customers.

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